The state-run National Aluminium Company (Nalco) has zeroed in on Sundergarh in western Orissa to relocate its second aluminium cum power complex, estimated to cost about Rs 16,000 crore, after the originally selected site of the project in Jharsuguda district ran into problem on environment grounds.
The company is likely to submit a proposal on new location of the project to the state government next week.
But sources said, the fate of the project, even at the new location, hinges on availability of water. The company has written to the state government for construction of a barrage on a seasonal tributary of Ib river to store water for use in the project. It has offered to bear the cost of the barrage estimated at about Rs 100 crore.
Though the company proposed to build a 0.5 million tonnes per annum aluminium smelter and a 1260 Mw captive power plant (CPP), sources said, the final project size will depend on the amount of water allotted to it. Going by the thumb rule, the project will require about 1,200 acres of land at the new location which is about 200 km from the earlier site in Jharsuguda.
Nalco was crowded out of Jharsuguda, which boasts of three other mega proposals for aluminum cum power complexes from Vednata, Hindalco and L & T-Dubal on environment pollution grounds.
Seeing the rush of investment at Jharsuguda, the Orissa government had asked the Nagpur based National Environment Engineering Research Institute (NEERI) to conduct a pollution carrying capacity study for the region.NEERI, in its report, has capped the total aluminium capacity for the region at 2 million tonne.
This sealed the fate of Nalco’s Jharsuguda plan as Vedanta Aluminium, Hindalco and L&T Dubal, which also have their projects in the same locality, have already received the government nod for 1.6 million tonne, 0.36 million tonne and 0.3 million tonne aluminium capacities respectively, taking the aggregate envisaged aluminium output for the region past 2 million tonne.
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Hence, Nalco had started looking for alternative sites for the project and sent teams to Sundergarh, Sambalpur and Bolangir to scout for new location. “After analyzing various datas collected by these teams on availability of land, water sources and transportation facility etc at various places, we zeroed in on a place 40 km from Sundergarh town as most suitable for the project”, said BL Bagra, director, finance, Nalco. “A formal proposal informing the state government about the new location will be sent next week”, he added.
For its second aluminium smelter and power complex in the state, Nalco proposes to use about one million tonne of surplus alumina it expects to produce from its Damanjodi refinery after the completion of the on-going expansion programme there.